Online Clothing Rental Market To Reach US$ 2,883.8 Mn By 2030
Global Online Clothing Rental Market was valued at US$ 1,313.0 Mn in 2022 and is estimated to reach US$ 2,883.8 Mn by 2030, exhibiting a CAGR of 10.33% during the forecast period (2023-2030). According to Global Online Clothing Rental Market Report, By Demography (Women, Men, Kids), By Business Model (Peer-to-Peer Model, Standalone Model, Hybrid Model), By Price Range (Premium, Mid, Low), By End User (B2C (Business to Customer), B2B (Business to Business)), By Type (Western Wear, Ethnic Wear, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East & Africa) as highlighted in a new report published by Coherent Market Insights.
Online Clothing Rental Involves a novel concept where consumers can rent clothes for a specific period. People who are looking for designer dresses but lack financial resources make use of these services.
Drivers:
Demand for online clothing rental is rising as the urban population expands as a result of an urban upper class and high net worth population growth. According to the United Nations,in 2022, now 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050. Projections show that urbanization, the gradual shift in the residence of the human population from rural to urban areas along with the overall growth of the world’s population could add another 2.5 billion people to urban areas by 2050. For instance, in, 2022, In the U.K., Tommy Hilfiger and Rotaro formed a rental partnership. Renters might be able to wear a variety of unisex items from the TommyXRomeo collection, as well as Tommy Jeans’ denim and vintage Hilfiger items, thanks to the collaboration. Tommy Hilfiger is one of the world's leading designer lifestyle brands, known for capturing the essence of classic American cool style with preppy-with-a-twist designs, and Rotaro company rents out dresses, coats, blazers, jackets, bags, and other related products and accessories for women in a variety of designs, styles, sizes, types, and brands, allowing customers to experiment with styles, discover brands, and extend the lifespan of a garment without creating environmental waste.
Market Opportunities
The growing popularity of fashion vlogs coupled with the rise in the television industry is projected to bring new market opportunities over the forecast period. The television industry requires clothes for a short duration and thus prefers renting the clothes instead of purchasing them. Moreover, an increasing number of online portals for renting clothes is further anticipated to accelerate market growth of online clothing rental over the forecast period.
Market Restraints
Challenges associated with apparel inventory management as the majority of fashion trends are seasonal and have a short lifespan.Most retailers offer price discounts after the decline of seasonal fashion trends when most of the customers are no longer interested in purchasing these products. This is expected to restrain the market growth of online clothing rental.
Market Trends
Monthly/quarterly subscription service is a growing trend in the online clothing rental industry where retailers provide subscribers with rented clothing on a monthly/quarterly basis. For instance, in 2021, With My Wardrobe HQ, Burberry expanded its circular fashion initiative and promises to offer rental and resale. Among the rental items are scarves, handbags, and trench coats.
Global Online Clothing Rental Market - Impact of Coronavirus (Covid-19) Pandemic
Many people who use clothing rental services are giving up their memberships during this global crisis. With many people around the world working remotely and concerns over saving money mounting, clothing rental is looking like an unnecessary expense. According to Coherent Market Insights, the online clothing rental market is expected to grow at a lower CAGR between 2020 and 2021.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/online-clothing-rental-market-1446
Key Takeaways
- On the basis of region, North America region dominated the global online clothing rental market in 2022 with 41% of market share in terms of value, followed by Asia Pacific and Europe respectively.
- On the basis of product type, western wear segment dominated the global online clothing rental market in 2022 with a 91.2% of market share in terms of value.
- In March 2020, Rent the Runway adds a new subscription option. The clothing and accessories rental service has launched a two-swap plan. The new two-swap model gives users the ability to swap out four items two times each month. It costs US$135 per month.
- Major players operating in the global online clothing rental market include Rent the Runway, Poshmark, Elanic Services Private Limited, Dress & Go , GlamCorner Pvt Ltd., Envoged, Etashee, Secoo Holdings Limited, and Secret Wardrobe
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